Chrysler Begins Construction on New Axle Plant

Chrysler broke ground today on a new axle plant north of Detroit in St. Clair Township, near Marysville, Michigan. The US$700 million factory is just part of Chrysler's planned US$3 billion investment in new plants for powertrain components.

A private equity investment group, Cerberus, will be purchasing the company from DaimlerChrysler AG by the end of the third quarter of this year, and has voiced its support for Chrysler's restructuring plan.

"We said last week that Cerberus was committed to the Chrysler Group's recovery and transformation plan, that the recovery and transformation plan represents our map, or our pathway moving forward," said Chrysler spokesman David Elshoff.